Indiana prompt pay law: deadlines, interest, and how to use it

Yes. Indiana's prompt-pay law (IC 27-8-5.7 and IC 27-13 for HMOs) requires payers to pay clean claims within a set window or pay interest.

The key rules

• Clean electronic claims are generally due within 30 days; paper claims within about 45 days
• Late payment accrues statutory interest on the overdue amount (confirm the current rate)
• The payer must pay or properly deny within the window
• Applies to state-regulated commercial insurers and HMOs

How to use it

• Apply the electronic vs paper distinction to use the correct 30- or 45-day window
• Calculate interest from the due date and request it in writing
• Cite IC 27-8-5.7 (or IC 27-13 for HMOs) when raising it with the payer
• Escalate patterns to the Indiana Department of Insurance

Confirm the current interest rate and the electronic vs paper day-counts. Prompt-pay rules reach state-regulated (fully insured) commercial plans, not ERISA self-funded employer plans, which are a large share of commercial volume. Medicare and Medicaid pay under their own separate prompt-payment rules. Confirm the current payment window, interest rate, and penalty against the statute or your state insurance department before citing a figure in an appeal, since rates are reset by legislation and by annual DOI rate-setting.

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